authors
Mahesh Prakash Kolamkar and Sourabh Vasant Ubale

abstract

The transition to the new financial regulation in India was a paradigm shift, with the creditors, security of the debtors, and mutual settlement of the bankruptcy in a group adjusted in 2023, with the adjustment of the Insolvency and Bankruptcy Code (IBC), in specific. The developed article is descriptive and theoretical in its approach, as it tends to examine how the IBC can meet creditor primacy and instill the concept of economic fairness and financial sustainability in it. It examines law rules, normative connotations, and historical development of the Indian insolvency system based on creditors. The paper concentrates on the IBC as a legal tool of market efficiency and a normative regime that governs justice, predictability, and confidence in credit economy systems in India using the context of studying institutional processes, procedural change, and the moral economy of credit.

Objectives

· To trace down the legislative and historical history of the creditors' treatment of the bankruptcy system in India.

· To analyze the theoretical model of economic fairness, collective insolvency regulation, and primacy of creditors under IBC.

· To determine the normative value of the IBC (2023) changes in ensuring enhancement of stability and creditor security of the system.

Methodology: The study is carried out based on the descriptive-theoretical approach according to the doctrine and conceptual analysis of the Insolvency and Bankruptcy Code and its recent amendments. In order to chart the history of creditor rights and institutional structure, it empirically questions the terms of the legislation, a joint committee report, regulation updates, and judicial exegeses. Creditor empowerment as a normative conception is understood by a mixture of the theoretical perspectives, namely collective insolvency governance, economic fairness, and creditor-bargain theory. The paper is a bid to elaborate the overall conceptual knowledge of the IBC creditor-centric orientation by synthesizing the previous studies and purpose of law as opposed to reporting the results.

Need and Significance of the Study: It is the reason why it is important to analyze it since the IBC, 2023, is introduced to the context of a growing financial infrastructure in India. The primacy of creditor rights is due to financial security and credit discipline in an instance where the economy is ailing due to the failure of assets worth non-performing loans and severe distress of companies. Besides procedural connotation, the paper also explores the philosophical and ethical questions of empowerment of creditors and outcomes on institutional legitimacies and economic equity. This article is relevant to the scholarly, governmental, and legal debate on the role of detracting equitable economic organizations and sustainable credit sectors in India; the argument of bankruptcy law assumes a theoretical elaboration of the reforms and governance.